Sunday, August 1, 2010

Juncker warns markets not to omit Greek efforts-paper

Mon Mar 1, 2010 3:02am EST Related News Luxembourg FinMin says euro zone must help GreeceFri, Feb 26 2010TEXT-ECB"s Trichet statement after EU meeting on GreeceFri, Feb 12 2010

FRANKFURT, March 1 (Reuters) - Europe would take action todampen market speculation against Greece if markets ignore theefforts the country has made to improve its financial situation,the head of the Eurogroup of finance ministers was quoted assaying on Monday.

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"If the Greeks hold on to the strict parameters and themarkets continue to speculate against Greece, we will not letthem just march through," Juncker told German dailyHandelsblatt.

Juncker would not give exact details about what would bedone to dampen speculation, but said there are tools againstthat.

"We have the torture equipment in the cellar, and we willshow them if needed."

Financial markets should not act as if Greece has not doneany work to improve its financial situation, he said.

"Markets cannot go ahead as if there are no efforts inGreece to consolidate public finances," Juncker said.

Juncker also said the European Central Bank"s presidencycannot be decided by geographical considerations and there couldbe two southern Europeans heading the 16-country bloc"s centralbank.

Many analysts said Germany pushed Portugal"s VitorConstancio to become the next ECB vice-president to improve thechances of Bundesbank President Axel Weber to become the nextECB head when Jean-Claude Trichet retires in October 2011. (Reporting by Sakari Suoninen; Editing by Toby Chopra)

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